On Feb 22, 2019, Dogecoin was ranked fourth highest in the number of active addresses — beating both Ethereum and XRP.
The active addresses category is a variable that evaluates the number of unique senders and recipients in a given day.
On blockchain-based networks like Bitcoin (BTS) and Dogecoin (DOGE), every peer-to-peer (P2P) transaction occurs between a sending and receiving address. This means there are two active addresses in every transaction. However, an active address may be involved in multiple transactions.
For example, if Jack sends Jill a bitcoin, a transaction occurs between two unique actors. The address of each user becomes active for that day. If Jack also sends George some bitcoins, there are now two transactions between three unique addresses. Furthermore, if Jill also sends George some bitcoins there are now three transactions but still only three unique addresses, insofar that Jill’s sending address is the same as her receiving address.
For this reason, the actual behavior of senders and receivers cannot be determined by examining active addresses alone.
Taking into consideration the total number of transactions for the same period may permit a better method for assessing the spending and selling behavior of consumers and merchants. If every active address is involved in only one transaction, then there should be exactly twice as many active addresses as total transactions.
The actual behavior of senders and receivers cannot be determined by examining active addresses alone.
However, if there are less than twice as many active addresses, it signifies that the average actor is engaging in multiple transactions. For example, EOS has the highest amount of transactions in the last 24 hours with 1,337,932. It had the seventh highest number of active addresses with 33,227. This means that, between 33,227 active users, a total number of 1,337,932 transactions took place within a 24-hour period. Being that two users are required for each transaction, this suggests that each user was engaged in, on average, more than 20 transactions.
On the contrary, if there are more than twice as many active addresses than transactions, it signifies that the average user is engaged in, on average, less than one transaction. For example, 58,879 active Dogecoin addresses were responsible for 26,787 total transactions. Each user was, thus, responsible for about 22.75 percent of each transaction.
However, transactions can only occur in increments of whole numbers. If the average number of transactions per person is less than one, it signifies that some, but not all, users were engaged in multiple transactions others were engaged in only one.